LONDON--(BUSINESS WIRE)--Technavio analysts forecast the satellite-based Earth observation (EO) market in Europe to grow at a CAGR of approximately 15.65% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the satellite-based Earth observation market in Europe for 2016-2020. To calculate the market size, the report considers revenue generated from the following:
- Data and value-added services (VAS), including image and data processing and information products.
- EO services and applications related to defense and intelligence, government authorities, energy and natural resources, navigation and location-based services, and living resources.
- EO applications in the insurance, manufacturing, and agriculture industries. For instance, insurance companies worldwide use satellite data about flood-affected areas to assess the number of casualties. The same information is useful for government agencies while providing disaster relief.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the satellite-based Earth observation market in Europe:
- Technological advances in satellite imagery
- Increased government spending on space programs
- Strong coordination of public sector EO initiatives
- Association between ESA and other major EO organizations
Technological advances in satellite imagery
Images provided by satellites offer valuable data and information, which are used by government organizations for sectors such as defense, oil and natural gas, mining, meteorology, and agriculture.
The technology used to capture satellite images has seen a marked improvement over the years. As a result, the expectations of end-users have risen. Users have started demanding more clarity in the pictures captured by EO satellites so that they can use these images effectively for applications such as weather information and forecasting, farming, and forestry.
According to Rakesh Kumar Panda, a lead analyst at Technavio for M2M and connected devices, “The innovative image-enhancing equipment, including high-resolution cameras, and advanced remote-sensing technology have enhanced the quality of satellite-based EO images. These images are used extensively in the defense, science, and R&D domains.”
Increased government spending on space programs
Government spending on space programs reduced considerably between 2009 and 2012. Before 2010, the spending declined because of the global economic recession of 2008-2009. Thereafter, the sovereign debt crisis hit Europe in 2010, and the US initiated budget sequestration. These factors reduced government spending until 2012, which affected space programs.
However, in 2013, the spending saw a sudden increase following an improvement in the global economic outlook. In 2013, 60 countries invested over USD 10 billion in space applications and technologies. Half of these countries were from the European region. In addition, Russia plans to invest around USD 1 billion in its space program during the forecast period.
Strong coordination of public sector EO initiatives
The GEO triggered a catalytic effect for more coordination of EO public sector initiatives in the EU, both at European and national levels.
At the European level, the EC manages the GEO High-Level Working Group (HLWG). The group involves all European GEO members and organizations that manage the GEOSS implementation and help shape a common European view on the GEO.
“At the national level, some of the European GEO members such as Germany, Greece, and Spain have developed or are intending to establish national management structures to coordinate GEO contributions, EO investments, strategies, activities, and programs,” explains Rakesh.
Association between ESA and other major EO organizations
The ESA plays an important role as a stakeholder in the Copernicus program as well as in the implementation of GEOSS. It is responsible for delivering and managing the portal of GEOSS, and offering satellite-based EO assets for many GEO societal challenges (including disasters and climate change) and GEO initiatives (including AfriGEOSS and GFOI). The ESA also conducts R&D programs related to EO to support the European and Canadian geospatial information sectors. These programs will also help improve EO services for organizations.
Other members of the Copernicus program include the European Organization for the Exploitation of Meteorological Satellites (EUMETSAT), the European Environment Agency (EEA), the European Union Satellite Center, European Center for Medium-Range Weather Forecasts (ECMWF), and the Geological Surveys of Europe (EuroGeoSurveys). These members are involved in joint GEO efforts to improve satellite applications.
Browse Related Reports:
- Global Remote Sensing Satellite Market 2016-2020
- Satellite-based Earth Observation Services Market in the US 2015-2019
- Global Satellite-based Earth Observation Services Market by Government Users 2015- 2019
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